New Delhi: All McDonald’s east India outlets shut, those in north on verge of closure.There are 80 outlets that have been hit by this cutoff in supplies by Radhakrishna Foodland, a move which is seen as a fallout of the ongoing spat between the fast food major and Bakshi.
In a letter dated December 20, Radhakrishna Foodland Pvt Ltd wrote to CPRL, the 50:50 JV between Bakshi and McDonalds India, saying it is discontinuing the supply chain services due to reduction in volume and uncertainty of the future, among others as also non-payment of certain additional amount.
The otherwise massive business in the festive season for McDonald’s is set to see a huge blip which will hit the food chains revenue.
“Our long standing logistics vendor Radhakrishna Foodland allegedly in collusion with McDonald’s corporation and their wholly owned subsidiary McDonald’s India Pvt Ltd….has decided to hold back stock paid for approximately Rs 10 crore by us,” Bakshi said in a letter to the landlords and developers of his outlets.
He further wrote: “While the American company and its subsidiary, MIPL, may have with their usual mala fide and malicious actions managed to give CPRL a temporary business setback at the end of the year and during this high sale festive season, yet we have made and are making alternative arrangements and shall be back to serve our customers very soon.”